Calnex Solutions (LSE:CLX)
Historical Stock Chart

From May 2019 to May 2024

Clorox Co. (CLX) expects to see more good than harm as retailers trim the number of brands on their shelves with its stronger brands picking up share as some weaker brands get pushed aside.

"We're more likely to benefit from assortment simplification than to be hurt," Beth Springer, Clorox executive vice president of international and natural personal care, said Thursday at the Barclays Capital consumer conference.

Retailers have been cutting the breadth of brands they carry, fearing that too many selections are overwhelming customers. Some are focusing on carrying the two leading national brands plus a cheaper private-label brand on their shelves, leaving other brands to the wayside.

Already, its brands like Kingsford charcoal and Fresh Step cat litter are the only brands in their category at some retailers. Its Glad brand is the lone trash bag sold at some stores, but Glad sandwich bags have also lost distributors as well.

Clorox expects to see more winners than losers within its portfolio, since 88% of its products are the No. 1 or 2 in their category.

"The observable facts will tell us we win more often than we lose," Springer said.

Clorox Chief Financial Officer Dan Heinrich said that Clorox expects a greater benefit from a weaker U.S. dollar in fiscal 2010 than previously anticipated, but commodity costs won't be as favorable as initially expected.

Still, he reiterated fiscal 2010 guidance the company issued last month, including that the company plans to see volume growth in the latter half of the year.

Clorox shares were recently up 40 cents, or 0.7%, at $58.75, and are up 5.7% so far in 2009.

-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; paul.ziobro@dowjones.com